An Indian court held that the reimbursement of expenses paid by the taxpayer to its foreign holding company under an agreement to send workers was not taxable in India. (Global Tax Update:May 2017/India) A second strategy is to introduce what is known as a „mirror account“, in which the parent company and the Mexican subsidiary enter into a secondment agreement in which the Mexican subsidiary undertakes to hire the expatriate for a certain period of time, pay his salary and continue to grant the expatriate all employment-related benefits at the same level as what it receives from the parent company I have not done so. Where the company that is bound by the contract to pay for the salary, the Mexican subsidiary is required to bear the costs of wages and benefits. However, the funds can be paid directly by the parent company into the expatriate`s bank account. In such cases, the Mexican subsidiary of the parent company reimburses the full amount paid to the expatriate. The second step in this strategy is for the Mexican subsidiary and the expatriate to conclude an employment contract that complies with Mexican laws and is fully applicable. Therefore, the Mexican subsidiary must register the expatriate with the social security system, as would be the case for the employment of an employee. It should be noted that, under this agreement, the parent company and the expatriate suspend their employment relationship during the period during which the expatriate is seconded to the Mexican subsidiary. There are two very different types of written expatriate agreements commonly referred to as expat agreements. You can document an expatriate assignment with one or both agreements. When establishing transfer agreements between partners, consider balance of power issues.
For example, in the event of a posting, the employer nomin (country of origin) usually retains the ultimate power to make employment decisions such as setting wages/benefits, imposing discipline/dismissal, and determining the duration of the posting. `If the defendant objects to the effect that the relationship with the applicant with the provision of professional services existed and proposes, during the conflict, an agreement stating that the report is governed by the provisions of the Bundeskreis Bürgerliche gesetzbuche, that act does not in itself prove that the relationship was of that type. because you need to study this document with other evidence to solve this case – i) if subordination investigations are accredited during the work measure, for example.B. the claimant receives orders on where and how his work is to be performed and receives tools that are the property of the company to perform the work; (ii) where an identity card identifies him as an employee of the undertaking and he is awarded an economic allowance which, even if the latter are designated as fees, is in reality the allowance paid for his work. If so, we must conclude that the actual relationship between the parties was an employment relationship and not a civil one. The employer is responsible for the performance of the contract, which must define the conditions under which the work is to be performed. The fact that there is no signed employment contract does not deprive the worker of his legal rights. . .